Cost of Goods Sold Budget The cost of goods sold budget integrates the direct materials purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventories for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget Complete the preparation of the cost of goods sold budget for Leamco, using information that follows provided by the controller, and using the previous budgets you have prepared. LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2 $9,870 $2,010 Finished goods inventory, January 1, 2012 Work in process inventory, January 1, 20Y2 Direct materials: Direct materials inventory, January 1, 2012 Direct materials purchases $2,000 $2,000 Cost of Goods Sold Budget Direct materials inventory, January 1, 20Y2 Direct materials purchases Cost of direct materials available for use Direct materials inventory, December 31, 20Y2 Cost of direct materials placed in productions Direct labor (1,800) Factory overhead Total manufacturing costs Total work in process during period (1.250) Work in process inventory, December 31, 20Y2 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 20Y2 Cost of goods sold (1.500) LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus 36,000 $6.00 $216,000 Deluxe Abacus 36,000 14.00 504,000 Totals 72,000 $720,000 Points: Shaded cells have leedback. The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired Inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared. LearnCo Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxo 36,000 36,000 1,000 3,000 Expected units to be sold (from Sales Budget) Desired ending Inventory, December 31, 2012 Total units available Estimated beginning inventory, January 1, 20Y2 Total units to be produced 37,000 39,000 (1.050) (2.100) 35,950 36,900 Direct Materials Purchases Budget Shaded cells have feedback. Before you make any changes to the budget, you review the information in the following Direct Materials Data Table and enter the units to be produced from the Production Budget panel. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar. Direct Materials Data Table Wood Pieces Beads 1 2 2 3 Packages required per unit: Basic abacus Deluxe abacus Cost per package: Wood plecos Beads Units to be produced (from Production Budget): Basic abacus Deluxe abacus S0.25 $0.25 35,950 36,900 Direct Materials Purchases Budget Shaded cells have feedback. LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Total Packages required for production: Basic abacus 35,950 71,900 73,800 110,700 2,200 5,000 111,950 187,600 Deluxe abacus Desired inventory, December 31, 20Y2 Total packages available Estimated Inventory, January 1, 20Y2 Total packages to be purchased Unit price (per package) (3,500) (4,500) 108,450 183,100 $0.25 $0.25 Total direct materials to be purchased $27,113 $45,775 $72,888 Direct Labor Cost Budget Shaded cells have feedback. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar Direct Labor Data Table Gluing Assembly 0.10 0.10 0.10 0.20 Hours required per unit: Basic abacus Deluxe abacus Labor hourly rate: Gluing Assembly Units to be produced (from Production Budget): Basic abacus $11.00 $19.00 35,950 Deluxe abacus 36,900 Points 2/2 Shaded cells have feedback. X Direct Labor Cost Budget Basic abacus Deluxe abacus 35,950 36,900 Points: 2/2 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Total Hours required for production: Basic abacus Deluxe abacus Total Hourly rate 3,595 3,690 3,595 7,380 7,285 10,975 $11.00 $19.00 Total direct labor cost $80,135 $208,525 $288,660 Points: 10/10 Factory Overhead Cost Budget Learnco has not separated costs in this manner. Shaded cells have feedback. After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount. LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 20Y2 Indirect factory wages $5,400 11,250 Power and light Depreciation of plant and equipment Total factory overhead cost 1,450 $18,100 Points